Compare Home Insurance Quotes

Save an average of 28% by comparing quotes from 50+ providers!

4 bedroom home

Some may think that it would be easy to say what the average home insurance in Canada would be for a four-bedroom house. However, it’s not, because of the following reasons;

  • There are many other metrics that are used to determine how much the premiums are going to cost.
  • Plus, there are many different insurance companies that offer home insurance, and they are all different.
  • There are many different discounts that can apply to the insurance premiums.
  • It also depends on where you live in Canada.

For example, some companies that are in the real estate business report that their Toronto clients who own a three bedroom home pay between $100 to $150. a month for home insurance. Just because there is one extra bedroom for a four bedroom homeowner does not mean they would be paying more or less for their home insurance.

Some insurance companies who deal with homeowners insurance indicate that the average cost for homeowners insurance being around $1,280.

What Do Insurance Companies Look At That is Going To Affect the Premiums?

Anything that could possibly cost the insurance company money by having to pay out a claim is going to be of concern.

How Much To Your Replace Your Home?

The biggest expense an insurance company would face would be having to replace your home. To help determine this, they are going to take into account;

  • How much you paid for it.
  • The size of the home.
  • How much in contents you have.

Where Do You Live?

Insurance companies use statistics to determine how many home insurance claims take place in an area. They will check the location of your home against these statistics.

Is Your Home Brick or Wood Frame?

Some insurance companies want to know this because wood frame homes are more susceptible to fire and require full replacement.

Is Your Home Close to Water?

It is great to have waterfront property, but it is going to cost you in home insurance.  Also, they will look at how close the home is to water access such as a fire hydrant, and how close to the nearest firehouse.

What is the Electrical Supply?

They are going to want to know what type of wiring is in the home you are buying. This will be especially important for older homes. They are concerned about knob and tube wiring also with aluminum wiring.

What Kind if Plumbing is in the House?

They will want to know if it is galvanized or lead piping as this poses more of a risk for them.

Are There Any Fireplaces or Wood Stoves?

These components create a risk for the insurance companies in the case of fire or carbon monoxide.

What is the Age of the Roof?

They are concerned about water damage claims which are most common with older roofs. They are going to want to know when it last replaced.

What is the Intended Use of the Home?

They will want to know if you are going to be the primary resident, or if you are renting out the home. The use of the home could alter the coverage.

Do You Have a Swimming Pool?

Some insurance companies will want to know this as it adds extra cost for a claim.

Do You Have a Finished Basement?

Again this is something else that could increase their costs for replacement.

What Are The Insurance Companies Biggest Risks?

According to an article in the globe and mail, water has become the number one cause of home insurance claims. The article states that ” A study issued by the Canadian Institute of Actuaries found that water accounted for 48 percent of home insurance claims in 2011, compared with 4 percent for fire, 18 percent for theft and 30 percent for other losses” source:Globe and Mail

How Much Will Your Insurance Company Cover?

In general most home insurance companies will cover some types of water damage. But for some homeowners based on their circumstances, they may need additional coverage.

The most common types of water damage covered are;

  • From burst pipes.
  • Water supply damage as a result of a hot water rupture or overflowing sink or toilet.
  • Water infiltration as a result of a primary claim.
  • Ice Damming.
  • Public Water Mains.

Fire Damage

Another major concern of insurance companies is fire.  Statistics gathered for just Ontario alone in 2016 shows that there were 7,169 structural fires estimating a loss of 654.5 million.

Areas Having an Impact on Insurance

Throughout all the different areas in Ontario, Toronto itself is one of the most expensive places to buy home insurance. Some of the reasons for this are;

The Age of the Homes in Toronto

The ages of the homes in Toronto are often one of the reasons why the insurance is higher. The plumbing and electrical components can be an issue as well as the roofs.

Vandalism and Break-ins

There are certain sectors of Toronto that are more prone to vandalism and break-ins. Homeowners who live in these areas of Toronto are going to pay more for their home insurance.

Cost of Repairs

Claims that include the cost of repairs are often higher because of the cost of labor being higher in Toronto. This is something else that may get factored into the cost of the premiums.

Taking Control of Your Home Insurance Costs

You most likely are not going to change your mind about the house you want to insure, or where it is located just so you can reduce your insurance costs. But, what you can do is really look hard at what discounts you can take advantage of to lower your rates.

Every insurance company is different in what they will offer by way of discounts. Although many of them have the standard discounts. Look for the extras because a small percentage by way of discount can make a difference.

You can make this an easy task to do by getting insurance quotes for homeowners insurance then looking at what discounts they offer so you can use these to your best advantage.